Impact of Contractionary Monetary Policy

As a portfolio manager, you are tasked with analyzing the potential impact of macroeconomic indicators on your investment strategy. Recently, you observed that the central bank in your country has indicated a shift in its monetary policy stance, moving from an accommodative position to a more contractionary approach. This change is anticipated to affect inflation rates, interest rates, and overall economic growth.

As part of your analysis, you need to identify which of the following macroeconomic indicators would most likely decline as a direct result of this shift in monetary policy, assuming all other factors remain constant.